Multiplicative thinking is widely accepted as a critically important 'big idea' of mathematics that underpins much mathematical understanding beyond the primary years. It is therefore important to ensure not only that children can think multiplicatively, but that they can do so at a conceptual rather than procedural level. This paper reports on a large study of 530 primary school children in Australia, New Zealand and the United Kingdom. The research question was "To what extent do children of 10 and 11 years of age understand what happens to digit values when numbers are multiplied and divided by powers of ten?" A written multiplicative thinking quiz was administered and one section of four questions asked students to multiply and divide two digit whole and decimal numbers by a power of ten and then explain what happened to the numbers. Correct response rates for the four calculations ranged from 38.3% to 61.7%. Response rates for appropriate explanations about what happened to the numbers ranged from 2.6% to 5.5%. Most students who attempted to explain what happened did so at a 'pseudo-procedural' level with responses such as 'a zero is added' or 'we take off the zero'. The students who did explain it conceptually did so in terms of the digits moving a place for each power of ten. The implication is that teaching of multiplication and division needs to be done at a conceptual level, with attention paid to the underlying mathematical structure, rather than relying on 'pseudo-procedures' such as 'adding a zero' which are unsustainable and will likely lead to errors.